York tax rate forecast: 3.2% hike

Deborah McDermott

Thursday

Jan 29, 2009 at 2:00 AM

YORK, Maine — Looking at the numbers at this point in the budget process for fiscal year 2010, the town's finance director said taxpayers can expect to see a 3.2 percent increase in the town's tax rate, or 27 cents per $1,000 of property valuation.

YORK, Maine — Looking at the numbers at this point in the budget process for fiscal year 2010, the town's finance director said taxpayers can expect to see a 3.2 percent increase in the town's tax rate, or 27 cents per $1,000 of property valuation.

There are many variables that can change that, said Jennie McCann. The town Budget Committee may reduce municipal line items, or voters in May could chose to reject any or all parts of the budget.

The School Committee and selectmen have just finished wrapping up their work on their respective budgets, in preparation for the first Budget Committee meeting tonight.

The school's $26.1 million operating budget came in at 2.5 percent over the current year. However, because of a loss of more than $1 million in state revenue, taxpayers would pay 4.9 percent more.

The town's operating budget came in at $14.2 million, 1.67 percent over the current year. However, due to revenue lost primarily because excise taxes dropped as people held onto cars longer, taxpayers would pay 4.5 percent more.

The town's tax task force had set a cap on taxpayer impact of 4.5 percent.

McCann said assessor Rick Mace anticipates a 2 percent increase in total valuation for the town, or roughly $4 billion. That amount won't be certain until April 1, she said.

She said she anticipates for a $400,000 home, taxes would increase roughly $100 a year.

"Can people handle another $100 a year? I don't know. That's something they're going to have to ask themselves," she said.

School spending

Teachers are in the third year of a three-year contract and will receive raises of 3 percent in fiscal year 2010. The School Committee discussed but rejected cutting teaching positions, deciding to maintain current student-teacher ratios.

Due to the state's consolidation law, voting on the school budget has changed. The Budget Committee no longer has power to reduce a line item. A town meeting will be held in May, when residents can vote portions of the budget up or down. This will be followed by a townwide vote on a single budget number. If that vote fails, the School Committee has to rework the budget until the town accepts it.

Town budget

The town's contracts stipulate that raises are tied to the consumer price index, and in 2010 this translates into a 2 percent salary increase.

At recent meetings, the selectmen cut a number of items from the budget, including work on town roads and purchase of several pieces of equipment.

However, at their last meeting Monday night, selectmen voted 3-2 to add in $25,000 for a study of the town's growth ordinance.

In supporting the inclusion, Selectwoman Cathy Goodwin said the study will be "critical" as the town plans for the future and economically uncertain years. "It seems logical to me that elements of this study are critical for townspeople to know."

The town budget continues to be under the purview of the budget committee, which has authority to raise and lower individual items.

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